SHARP HOME

Thursday, 11 February 2016

4 things you need to know before becoming an AirBnB Host

Airbnb is an international 10-billion dollar tourism
enterprise that can offer people pretty decent additional income for renting
out their home or a room in their home. This home-sharing endeavor appeals to
travellers who are either on a budget or want that feeling of being at home
rather than living out of a hotel room. For hosts, Airbnb affords additional
income that could help pay off mortgages or offset monthly expenses. It’s a
great way to make a little extra cash. But before you take the plunge and
become a host yourself, we have compiled a list of important topics to
consider.

1) Are you actually allowed to host your property
on Airbnb?

If you own your home, then the answer is yes. It’s your
property; you can do what you wish to it. However, if you own a Condo, you may
actually be restricted as many condo boards have explicit exclusions on
subletting your condo out to others. If you are renting your property, then
most likely the answer is no. Even so, check with your condo board or your
landlord before you decide to share your home. It’s best to keep your
home-sharing venture on legal terms to avoid any issues down the road.

2) How much work is really involved?

Consider what type of amenities you would expect if you were
paying to be a guest at someone’s home: You would want clean, fresh linens and
towels, a clean room and bathroom, and possibly a kitchen to make meals in.
Although many amenities you offer your visitor can be determined by yourself
ahead of time, remember how valuable a good review can be to get you more guests
and ultimately more money in your pocket. Do you want to do the pre-cleaning
and post-cleaning yourself? Or would you want to hire a cleaning service? Are
there any alterations or renovations you need to do with the space before you
host? Try to weigh out the pros and cons of becoming a host and the work
involved versus the income you could potentially gain.

3) What kind of insurance do you need?

What happens if the property was damaged or vandalized? Who
covers that type of loss? The answer is, Airbnb covers it. They have their own
insurance liability coverage called the Host Guarantee which covers up to
$1,000,000 in damage. Even so, you should still check with your home insurance
policy and let your broker know that you will be renting out your home to
Airbnb guests. If you are gone most of the year, and using your home primarily
for renting out to Airbnb guests, then contact your insurance broker as soon as
possible, as you will need special coverage for this. If anything was to happen
to your home, and you did not have the right coverage, you could be denied the
claim.

4) Do you need to claim your Airbnb income on your
taxes?

Yes, you do. No matter the amount of income you made
on your Airbnb endeavor, you must claim it on your taxes. It is a source of
income after all. In fact, these types of online ventures have become so
popular that the CRA has been really diligent on tracking online expenses.

Becoming an Airbnb host is not only a great opportunity to
increase your income, but it is also a way to meet great, interesting people
from all over the world. For more information about home insurance or if you
need a home insurance quote, contact us at 1-877-218-2008 and we will be more
than happy to help you.